One of the big things that can have a negative affect is the age and condition of the home's systems (HVAC, plumbing) and appliances. If the local market is declining, that'll also hurt your home's appraised value.
What Lowers a Home Appraisal? The home's location has the biggest impact on the valuation. For example, the value will be negatively impacted if the home is in an undesirable neighborhood or situated next to a junkyard, power lines, or a busy street.
Just keep your communication to the appraiser about the facts of the home and neighborhood, how you priced the house, and any other relevant information you think the appraiser should know. And remember, don't discuss value. Don't pressure the appraiser to 'hit the value' and you'll be fine.
What kinds of mess can affect a home's appraisal? Appraisers are trained to overlook clutter. Stray clothes, scattered toys, unwashed dishes, unmade beds, disorganized closets, and other items that suggest you actually live in your house should not affect an appraisal if they don't affect its structural integrity.
Contact the appraiser. Give her a call to go over the appraisal and ask for the information she relied on to reach the proposed appraisal value. Find out whether the "comparable" sales are accurate, complete and timely. If not, ask that the appraiser to consult a better data set and adjust the value as she may see fit.
Another reason some appraisers low-ball is to avoid claims against their errors and omissions insurance policies-for unsubstantiated value. When borrowers default or when Fannie or Freddie requires a lender to buy a loan back because of a defect in the loan file, lenders may look to blame others to recoup their losses.
Everybody makes mistakes, and appraisers are not immune. This process may actually be led by your lender. If they find an omission or need something clarified, find something that was calculated incorrectly or any other mistake, they may ask for the appraiser to resubmit.
A low appraisal could be very good for you as the home buyer — if the seller decides to lower the price to match the appraisal. However, you're taking a risk when the appraisal doesn't support the asking price.
Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely. If a new appraisal is ordered, talk with your agent about somehow splitting the cost with the seller.
Appraisal fraud is a form of mortgage fraud, whereby the value of a home is deliberately appraised at an inflated amount, well above its fair market value (FMV). Appraisal fraud can occur when an appraiser is in on the scam, and dishonestly overstates the value of the property.
If your appraisal is taking a long time in 2021, a combination of factors is likely contributing to the wait. One major issue is that there is a logjam for lenders: Banks are currently working through a ton of mortgage applications as home buyers look to close on new homes, as well as refinancing applications.
On average, the entire process should take less than two business days. The team monitors the revision request sent to the appraiser and updates the client through every step of the process. There are many factors to consider when submitting a Reconsideration of Value request, which can be overwhelming.
An appraiser can make changes to the appraisal and adjust it up or down with the correct data from other comparable homes that have sold.
Things that can hurt a home appraisal
A cluttered yard, bad paint job, overgrown grass and an overall neglected aesthetic may hurt your home appraisal. Broken appliances and outdated systems. By systems we mean plumbing, heating and cooling, and electrical systems.
Low home appraisals are not a common occurrence, but they do happen on occasion. According to Fannie Mae, appraisals come in below contract only about 8% of the time. Most appraisals will come in at the right asking price, but when they do come in low, they are often renegotiated.
Do Appraisers Look in Cabinets? In most homes, the appraiser will have no reason to look in the cabinets because they do not need to open them to measure living space. However, if there are obvious signs of disrepair, broken hinges, infestation, etc., they might look in cabinets.
The primary factors in a home appraisal are the current market trends relating to the location and type of house, the recent sales figures from comparable homes in the area — and, of course, the condition of the home. Appraisers will look for factors in several areas to assess the condition.
The Importance of Good Gutters
Gutters work by moving water away from your home and its foundation, as well as properly guiding water off of your roof during rainfall. A home appraiser will examine the gutters when estimating the value of the home and include their condition in the home value.
You'll also want to make sure that you give your home a deep cleaning a few days before your appraisal to reduce clutter. Make sure that everything is neat, put away and in its place before your appraiser arrives.